Kenya Power recorded a 3025.4% surge in profit after tax in the 6 months to December 2024 driven by reduced finance costs, increased electricity sales and lower cost of sales.
- In the period, the listed utility firm made KSh 9.97 billion in net profit compared to KSh 319 million in a similar period in 2023.
- The company issued an interim dividend of KSh 0.20 per share after a 9 year freeze, to be paid on or about 11th April 2025 with the book closure date set on 8th February 2025.
- Electricity unit sales went up 5% to 5,506 Gigawatts per hour from 5,225 Gigawatts per hour on the back of higher consumption and new customer connections.
“The increase in electricity unit sales was driven by higher consumption as a result of improved network reliability, connection of new customers and improved outage resolution timelines supported by availability of critical materials including meters and transformers,” Kenya Power noted in the earnings report.
Despite the increase in sales, the overall electricity revenue declined 5.4% to KSh 107.4 billion from KSh 113.6 billion in December 2023 owing to a reduction in tariffs.
The stronger shilling coupled with loan repayments saw finance costs reduced by KSh 13.1 billion to KSh 1.9 billion in December 2024 from KSh 15.0 billion in December 2024.
“This growth in profitability is attributed to lower cost of sales and reduced finance costs owing to the stability of the Kenya Shilling against major foreign currencies during the period under review, and an increase in electricity sales by 5%,” KPLC said.
Power purchase costs decreased by KSh 1.7 billion to KSh 71.4 billion in the period on the strengthening Shilling since a majority of power purchase agreements are foreign currency denominated. “This cost reduction was further supported by an optimized generation mix dispatched during the period.”
Operating expenses increased by KSh 4 billion to KSh 23.7 billion, attributed to higher staff costs, depreciation and maintenance costs. Further, the working capital position improved by 30% from negative KSh 27.4 billion in June 2024 to negative KSh 18.9 billion in December 2024.
Kenya Power has 90% of its loan portfolio in foreign currency, especially the US Dollar and the Euro. In the 6 months to December 2024, the company commenced repayment of the GoK On-lent loans that had remained on a repayment moratorium since March 2020.
The recent profits and dividend payouts have steered Kenya Power’s share price up 454.3% in a year to KSh 7.76 per share as of today’s morning session.
